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2) Flash City Inc. manufactures small flash drives and is considering raising the price by 75 cents a unit for the coming yea

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Answer #1

Incremental analysis

Current Projected
Incremental revenue 671500 666000
Incremental cost -458200 -417600
Incremental Profit (loss) 213300 248400

Profit increase by (248400-213300) = 35100

So answer is c) Increase by $35100

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